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The Early Show

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Us 23, Washington 20, Derek Jeter 9, Roger Clemens 8, Cbs 8, Minnesota 8, New York 7, Fbi 6, Mcconnell 5, Bo Simpson 4, China 4, Erica 4, London 4, Murdoch 4, Seroquel 4, Boston 4, Yum 4, United States 4, Lopez 4, Clemens 4,
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  CBS    The Early Show    News/Business.   
   (2011) New. (CC) (Stereo)  

    July 15, 2011
    7:00 - 8:59am PDT  

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my biopsych class from ucla. >> thanks for watching. have a great weekend. >> caption colorado, llc comments@captioncolorado.com good morning. there was some trouble on the tarmac. a scary collision at boston's logan airport last night as a huge delta jet clips the tail of a smaller aircraft while preparing for takeoff. >> we're going to have to wait here for a moment. i think we hi the rj off of her left with our wing. >> reporter: the collision forced hundreds of passengers torto be evacuated. live to boston for the latest. a tale of two capital. in washington the stalemate on the debt ceiling continues as president obama gives the congressional leaders 24 hours to figure out whether they can reach a deal. in minnesota a budget deal is finally struck but after a painful two week long government shutdown which continues to
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anger voters. hacking case left the pond. rebekah brooks has resigned in the wake of the growing phone-hacking scandal. this is the fbi as it looks look allegations that murdoch's employees tried to hack into the cell phones of 9/11 victims back here in the states. we have got all of that "early" this friday morning, july 15th, 2011. captioning funded by cbs good morning. it is a beautiful start to the friday, july 15th, here in new york. good morning to everybody. out there. i'm chris wragge. >> a fine way to kick off your weekend. nice to have you with us. i'm erica hill. washington, we have been talking about a lot when it comes to the budget crisis not the only capital with one. last night, minnesota, we have been following this as well. government shutdown for two weeks and minnesota managed to resolve their issue last night. a small sigh of relief for folks there but it happens in week two of a statewide shutdown.
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see the uptown diner in st. paul who are fed up not with just their state government but also with washington. we will talk to them and see if maybe they have some ideas for the lawmakers who are trying to come to some sort of a consensus. also rocket, roger clemens, hall of fame -- maybe. who knows now. he gets a walk at this point for the famous pitcher. a good thing at this point. he walks away from his famous perjury trial after a mistrial declared two days in and so see what is he off the hook or could they say you're coming back to court at a later date? we will discuss that. >> that's a big question right now. let's start with this. first, runway collision between two jets in boston last night. nearly 300 people on board and two delta jets preparing for takeoff from logan international. both departures to an abrupt
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stop stop. >> reporter: both planes were preparing to take off when this collision happened. no one seriously injured. the passengers we talked with say they felt a jolt and that was pretty shocking but, overall, everyone remained calm. it happened about 7:40 thursday evening. the wing of delta flight 266 a jumbo jet, clipped the tail of a delta commuter flying atlantic southeast flight 1904 heading for raleigh, north carolina. those in the cockpit remained calm. >> going to have to wait here for a moment. i think we hit the r.j. off of her left with our wing. >> reporter: the planes were on taxiways that run nearly perpendicular to each other. the 76. was moving. the smaller plane was stationary and received the most damage as the left wing of the larger plane sliced through the tail of the commuter. >> we hit -- >> reporter: the 767 headed for amsterdam with 204 passengers on board and the regional jet carrying 74 were both quickly
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evacuated. >> the most important thing here this is only one injury a male person who claims that his -- he has a pain in his neck. >> reporter: the impact jolted those on board and drew more than a dozen emergency vehicles. >> worst experience in my life. never fly delta again. >> the girl next to me on the wing crying and the guy tried to jump out of the emergency exit but everybody was calm pretty much other than that. >> reporter: a plane hit a tail section of a jet at new york's kennedy airport. no one was injured in that incident either, which is still under investigation. one aviation expert told cbs news that ground collisions like these cause an estimated $11 billion worth of damage each year. . as for what went wrong at collision and what caused this collision? the faa is now investigating. delta has taken both planes out of service for inspection and all of the passengers have been rebooked. live at logan airport, i'm sarah
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congi. the heated debate on debt cutting, in st. paul minnesota, leaders struck a budget deal to end a very painful two-week government shutdown. that deal was struck last evening. the impasse had crippled the state. in washington, the other capital you see there talks to raise the debt ceiling are deadlocked. we begin in washington where president obama will hold his third news conference this morning in 17 days. he plans to lay out his case for a compromise but we should point out again at this juncture still no agreement. cbs news senior white house correspondent bill plante joins us, though, with the latest developments. bill, good morning. >> reporter: good morning. at yesterday's meeting, the president tossed this whole mess back to the congressional negotiators. he told him, it's decision time and he suggested they go off and find out some solution in the
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next 24 hours or so. but he said that he and his staff will be on call for another meeting if they can't come to an agreement by tomorrow. both sides say thursday's meeting was calm cordial and productive, unlike the day before, when as the president told cbs philadelphia station kyw he appealed for an order. >> i told them bluntly the american people stop us to stop playing games and solve this problem and i was very blunt with them. >> reporter: officials say the group examined the big deal. spending cuts and entitlement reforms and savings from the tax code and unemployment insurance. mr. obama told the group the big deal is his strong preference but he would accept a $2 trillion dollar deal. also what both sides describe shortstop a fullback option. the proposal by senate leaders harry reid and meche mccom to
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give the president authority to extend the debt ceiling through 2012 without republican consent. >> mitch described his proposal as a last-ditch effort in case we were unable to do anything else. and what may look like something less than optimal today, if we're unable to get to an agreement, it might look pretty good a couple of weeks from now. >> reporter: and that fallback agreement is looking more likely. sources say that the person who made the most of the argument on wednesday, eric cantor didn't even open his mouth yesterday in the meeting. and they say that they expect things to move forward but they don't know how fast. there is no meeting today, but we will hear from the president at a news conference later this morning. erica? >> bill thanks. we will carry that news conference for you here on cbs as part of our special coverage that begins at 11:00 eastern time here on cbs. in minnesota, there is a
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deal. a deal reached that would end a 14-day government shutdown. the longest state shutdown in this country in a decade. it started before the july fourth weekend. state parks and rest stops were closed. jamie yuccas joins us from minneapolis from a diner there with folks on a deal that has been struck. jamie, good morning. >> reporter: good morning, erica. it is the talk of the town this morning as the two-week government shutdown a partisan shutdown, the governor and state legislators yesterday came together struck a deal to end that unprecedented government shutdown. the deal that ended the stalemate was announced by grim-looking state legislators. >> we have an agreement and the next couple of days will be very busy trying to expa died and move those details. >> reporter: it came together because first-year governor mark dayton did a sunday about-face agreeing to a public demand that
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the budget have no tax increases. >> if i look myself in the mirror and say this is what i believe is the right decision for the right decisions because it's right for the most people in minnesota, then i can live with that. >> reporter: in return republicans gave up their demands regarding new restrictions on abortion and stem cell research as well as a plan to cut the state work force by 15%. the government shutdown idled more than 20,000 state workers and closed state facilities like parks and government offices. the new budget will borrow from the state schools and its tobacco settlement fund to close a $5 billion shortfall. now the shutdown is not officially over yet. lawmakers have to come back to a special session to vote on it 37 the price tag of this two-year deal, $55.4 billion. >> it is a step there. jamie, thanks. in our next half hour you saw a number of folks in that diner with jamie. we will speak with them and find out how they feel now about the shutdown, about this deal and also how they feel about the
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stalemate in washington, d.c. so that is coming up a little bit later right here on "the early show." now here is chris. britain's phone-hacking scandal has reached the u.s. and washington. word an fbi investigation is under way into whether 9/11 victims were targeted in the phone hackings. whit johnson has that story in a moment. while in london, breaking developments this morning. a top executive with rupert murdoch's news corp has resigned in the wake of this controversy. cbs news correspondent dana lewis is in london with more on that. good morning. >> reporter: good morning, chris. the murdochs appear to be in full retreat today. james murdoch issued a statement acknowledge willinging wrongdoing in the phone-hacking scandal and says his company will take out full newspaper ads across britain apologizing to the nation. james murdoch arrived at the london headquarters of news nnel today silent but within hours rebekah brooks his chief executive, resigned. 22 years an ally of rupert murdoch who last week flew into
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london to show his support during a phone-hacking scandal she has been involved in as far back as 2003. >> whether you ever paid the police for information. >> we have paid the police for information in the past. >> reporter: the murdochs summoned to appear tuesday have indicated they won't be answering all questions because of ongoing criminal investigations. >> thanks very much. >> reporter: but the committee says the murdochs and brooks will be compelled to answer because they are not criminally charged and james has said parliament was lied to. >> he has stated that parliament has been misled by people in his employment and we want answers to questions about this. >> reporter: in an interview with his "wall street journal" newspaper, rupert said in agreeing to appear he wanted to address things in parliament he called total lies and adding it's important to establish our integrity in the eyes of the public. but as murdoch's chief executive step down brooks acknowledged in her statement a sense of responsibility for the people
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already hurt by this scandal. it's important to note that the murdochs first declined to appear in front of the parliamentary committee on tuesday and then issued formal legal summonses to come to that panel and said yes. the questioning next week is expected to be fierce. >> dana, thank you. we mentioned britain's phone-hacking scandal has reached this country. the fbi opened an investigation yesterday into news corp employees actually tried to hack into the phones of september 11th victims. cbs news correspondents whit johnson joins us now from washington with the latest on that angle of this story. good morning, whit. >> reporter: good morning to you, chris. these allegations first reported by the daily mirror. another british tabloid and top rival of "news of the world. >> but here in the united states it was pressure from lawmakers that prompted the fbi to take action. cbs news has confirmed the fbi is investigating allegations that reporters working for rupert murdoch's disgraced and now defunct "news of the world"
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may tried to hack the phone of victims of victims of the 9/11 terrorist attack. according to a low formality information it was triged in part of peter king of new york to fbi director robert mueller. king cites published reports that journalists working for the paper had solicited a new york police officer to gain access to the phone records, adding it is revolting to imagine that members of the media would seek to compromise the integrity of a public official in pursuit of yellow journalism. >> disgraceful. that's during a time when the country was in absolutely trauma and when family members didn't know if their relatives were missing or dead or where they were. >> reporter: the allegations are trouble to john who lost his brother james in the world trade center attack. >> you might want to think about this individual just walking into your house and going through your private belongings your private paper work. >> reporter: and the allegations from the daily mirror came from an anonymous source and cited no
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evidence that phones of 9/11 victims had actually been hacked. chris? >> whit johnson for us in d.c, thanks. see what happens like we mention every morning, new development every day and a big development today is rebekah brooks finally stepping down. >> we can bet there will be more development over the weekend and we will continue to follow it into the week as well. jeff glor is standing by with a check of other headlines on this friday morning. >> it's also a special friday because it's erica hill's birthday. >> it's not my birthday. i'm on the 20th but i love the early celebration. >> did i just get caught? oh, because you're away. i think i spoiled the celebration! >> he just surprised the surprise on network television! >> good morning, guys. we move on here! >> good news jeff. in news in new york city the man accused of kidnapping and killing an 8-year-old boy in new york is held without bail this morning. yesterday, levi aron appeared in court where a judge ordered a
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psychological evaluation and aron was placed on suicide watch. outside court yesterday, he faced outrage. >> police say aron told him he killed leiby after a search was under way. cletzky was abducted on monday while you walked to home for the first time in his life. >> there are indications of scratches on aron's arms and wrists. i think it's -- it's reasonable to say at this time based on the marks on the -- on the defendant here that there was some struggle. investigators say it appears the boy was tied up before he was killed but he tried to fight off his captor anyway. an alarm, on-board computer failed and they got it running again. the second computer failure on
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this last shuttle mission. the nasa says there are no safety concerns. today, they are transferring more supplies from "atlantis" to the space station. if you're hoping for an nfl season, it looks pretty good right now. nfl owners and players have made significant progress in contract talks. there has been major movement on rookie contracts which have been amajor stumbling block up until now. other issues remain, but insiders say the four-month lockout could be over within 4 hours. at the british open today, a golf legend turned back the clock. 61-year-old tom watson take a look at this! second round tee shot 6th hole. ball goes up. single hop. boom. in. tom watson hole in one. very nice to see. many golfers waiting their whole lives for the first hole in one. watson, this is his 15th. one number i got right this this morning! >> only one! >> marysol castro, i got your birthday wrong too, actually. >> you sure did. you thought mine -- but we got your birthday right.
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thanks so much. that's your latest weather. now over to chris and erica. officially good morning. >> good morning to you. >> thanks. tune in next half hour where jeff gives away the birthday presents that we actually got for her! >> come on! still to come rough mistrial in the roger clemens perjury trial. is the rocket off for good? >> we will ask our legal expert those questions and get some answers. this is "the early show" on cbs. bacon! smokey bacon, meaty bacon, tasty bacon! bacon? ohh, la, la... oh, i say is that bacon?! oh, good heavens! bacon! bacon! bacon! bacon! who wants a beggin' strip? meee! i'd get it myself but i don't have thumbs! yum, yum, yum, yum, yum... it's bacon!!! mmmmm...i love you. i love bacon. i love you. i love bacon. i love you. [ male announcer ] beggin' strips! there's no time like beggin' time. and introducing beggin' thick cut. [ hero dog ] i'm gonna need a bigger mouth!
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it was a courtroom shocker in the government's perjury case against roger clemens. the judge declared a mistrial in the second day of testimony. clemens accused of lying when he denied taking steroids and human growth hormones. >> what is next for the pitching great? we'll speak with legal analyst jack ford about the chances this
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case could be dropped all together. >> this portion of "the early show" sponsored by discover. it pays to discover. bonus at the pump... and at many of the places their summer plans take them. it pays to switch, it pays to discover. k9 advantix ii. not only kills fleas and ticks, it repels most ticks before they can attach and snack on us. frontline plus kills but doesn't repel. any tick that isn't repelled or killed may attach and make a meal of us. [ male announcer ] ask your veterinarian
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tuition at the university of california is going up another 9- point-6 percent for the fall good morning. it's 7:25. i'm grace lee with your news headlines. tuition at the university of california is going up another 9.6% for the fall term. under grads tuition will jump to more than $12,000 nearly $2,000 more than last school year. the man accused of stealing a picasso sketch from a san francisco gallery had more expensive art in his new jersey apartment. police found another stolen picasso on his wall as well as other works of art that were taken recently from galleries and hotels in new york city. google shares are up more than 10% this morning on the company's new earnings report. the internet search engine made 36% more in the 2nd quarter than it did one year ago.
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google's cofounder larry page replaced another man as ceo at the start of the quarter. and we'll get an update on traffic and weather on this friday morning coming right up.
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good morning. we have a live look at your drive through pleasanton along westbound 580 slightly sluggish conditions for the morning commute. if we jump to our maps, we have
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an accident to report. westbound 580 right at vasco, adding to the sluggish conditions working your way through there but friday light in some spots. still only 18 minutes west 580 from the altamont pass to 680. north 280 bunker hill, accident with injuries, main lines not affected. bay bridge traffic clear heading into san francisco so no troubles there. looking good on the lower deck, as well. and the golden gate bridge problem-free, still a nice drive out of marin county into san francisco. that's traffic. here's kristy. >> thanks a lot, gianna. cloud cover out there this morning, but there is sunshine in store later on this afternoon. in san jose, a little bit of cloud cover out there but blue by the afternoon. clear conditions in those inland spots and temperatures are going to make their way to the mid-70s in our inland spots. around the bay shores, cooler in the mid-60s and breezy, as well. a little bit of cloud cover lingering. clouds hang on at the coast all day long. temperatures there only in the 50s and definitely breezy. slight warming trend on the weekend, then warming up
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significantly by wednesday of next week, breaking the 90 mark, mostly sunny conditions.
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welcome back to "the early show." baseball great roger clemens perjury trial barely begun when a judge declared yesterday mistrial. one costly mistake by the prosecution saying clemens lied about using performance-enhancing drugs and see what is next for rocket coming up. welcome back. >> when that news broke yesterday. talk about a conversation that started across the country. >> a lot of people thought this was going to be the ultimate demise of roger clemens because had he had lied in front of congress, but see what happens. >> now things may be changing. check in as chris said with jack ford. first, here is jeff glor for another look at our top headlines this morning. >> good friday morning. good morning to everyone at
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home. two jet liners operated by delta need serious repairs before flying again after hitting each other on the taxiway in boston. both planes were prepping for takeoff last night when a wing of a delta 767 clipped the tail of a smaller regional jet. you can see what happened there. debt debate continues in washington today. the president and congressional
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baseball is a game of run, hits and errors but it was an error of the legal kind that led to a mistrial thursday in the perjury case of former star roger clemens. wyatt andrews explains what happened in court and now what is next for the man known as the rocket. >> reporter: the mistrial is a
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temporary victory for roger clemens. >> god bless you, roger. thank you. >> reporter: a permanent black eye for the justice department. federal prosecutors were under strict orders not to mention laura pettitte the wife of clemens former teammate andy pettitte, because the judge ruled her possible testimony was second-hand and inadmissible. so when prosecutors played a tape showing members of congress discussing laura pettitte's testimony. >> let me read to you what his wife said in her afterward. >> reporter: the judge erupted calling it prejudicial against clemens and a direct violation of his order. >> the judge said the jury is not allowed to hear this evidence. prosecution went ahead and let the jury know about it anyway so it's a big deal. >> reporter: a big deal because the judge, all but accused the prosecution of cheating. government counsel can't do what it thinks it can get away with walton snapped. nis fir any first-year law student should know that. clemens known in baseball
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circles for his competitiveness will argue that all charges should be dropped because of the constitutional ban on double jeopardy. two trials for the same offense. legally, that's a long shot but a hearing is set for september 2nd. and so much for the federal crackdown on steroids in baseball. in april, a federal judge couldn't reach a verdict on most of the perjury counts against superstar barry bonds. now for roger clemens, a mistrial and now for the justice department, strike two. wyatt andrews, cbs news washington. joining us is cbs news legal analyst, jack ford. good morning. >> chris, good to see you. >> it didn't take long all right. like a rocket fastball. >> very good news i guess for roger clem epps at this point? >> at least for this moment it is. a mistrial is an unusual thing to take place inside of a courtroom. essentially it happens if a judge believes that something has -- has played out in front of the jury that could have an impact on the integrity of the trial. we have seen things such as
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jurors talk with other people during the midst of a trial and seen jurors going out and doing their own research or a witness blurts out something that they shouldn't say. more often than not judge is able to instruct jurors ignore it and make believe it didn't happen here. the judge here said this is way too big and way too prejudice. the judge said i can't ring the bell here so i don't have that as a remedy. as a consequence, this trial is over. >> it was actually a piece of video. like you saw with wyatt's piece saying a first-year law student wouldn't make this error. >> the prosecutor mentioned other people on the yankees who had allegedly being using steroids. they argued about this. the judge said i don't want to you mention the fact that andy pettitte said to his wife yes, roger told me he was using. the judge said it's just too
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tenuous. he said/she said. inadmissible hearsay so clearly it was supposed to be out of the case. yet, here come js video and a congressman saying oh, and by the way, laura pettitte says in her affidavit that her husband told him that roger told him. this is clear. this shoot nobody a problem. i ruled this is not coming in and it showed up anyway so this thing is done. >> federal prosecutor though, why not listen to the judge? >> well, look. there are two things that play out here and that has to do with whether or not this is going to be retried. if a judge believes that a prosecutor did something intentionally with sinister motive here. seen it in some cases, and not a lot, but important. prosecutor barry -- or coach a witness to say something they know they are not supposed to be saying. in those situations a judge can step up and say, you know what? this is so egregious here i'm not going to let you do this over here. >> you had your chance.
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>> the question is if it's inadvertent but grossly inadvertent. is that enough for a judge to say you had your shot. you blew it. i think it's really your fault that you blew it and it was so serious that i'm not going to subject in this case mr. clemens to another trial. the judge is going to have to wrestle with that decision. we will know something back in september. >> jack, thanks. good to see you. have a great weekend. up next on "the early show," minnesota's two-week government shutdown is coming to an end and talk to some people who are still angry will the collapse. this is "the early show" on cbs.
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two-week government shutdown in minnesota is coming to an end. a budget deal was struck yesterday. for some in machineinnesota though, a crazy frustrating two weeks. we gathered a few people who have feelings about the shutdown and what also happens on a federal level in this country. joining us is chris and harry and harley. good to have you with us. jenn, you and your husband were
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both laid off repeatedly as i understand it. now that the shutdown is over do you have any indication you may get your job back? >> we will. i think it's going to take about another week before they have a final agreement. and, at that time, when they are up and running, then we will be able to go back to work. >> so when you first heard news jenn, there had been this deal what were your thoughts? because you had already gone through two weeks of no pay. i understand you have a 13--month-old. obviously, a lot to take care of. >> yeah, it is. we are excited. we're ready to get back to work and start bringing in some income again and paying our bills. we're ready. >> are you concerned at all this could happen again or do you feel like with this deal you're safe for a little while? >> we're hoping that it doesn't happen again. but it might in a couple of years when they try to figure out the budget again. it's a possibility but we hope it doesn't. we have to plan a little bit
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better next time in case it does. >> chris, you were laid off as i understand it at the beginning of the month and you've been protesting at the state capital. the minnesota shutdown now almost over. you have a lot of serious concerns about the national economy and the impasse that we are watching out of washington, d.c. if you could talk to lawmakers at this point, who are trying to hammer out something in washington, what would you ask them to do? >> well, i think they would have to consider raising taxes on millionaires in this country. we have had basically the middle class in this country for the last 40 years has been slowly chipped away at and the top income earners have gotten a bigger piece of the pie every year. it's about time that they pay a little more in taxes to help the rest of us out and they haven't created the jobs. people say that we can't raise taxes on them now, they are going to not create jobs if we raise taxes. they have their tax cuts and done nothing about it.
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we have to talk about tolerance reform. i'm not unrealistic that bthat. republicans need to understand we can't do it on the backs of everyday americans. we need to actually raise income on people that have been doing well since 2000 with the bush tax cuts. >> harley i want to bring you in on this because you, also, are a little concerned about the situation nationally. do you feel like lawmakers and politicians at both the state and the federal level understand the needs and the concerns of americans like yourself? >> i don't think so. i'm frustrated and disappointed because -- frustrated because it takes them so long to finally figure out what they need to do and disappointed they don't really address the long-term issues. as jenn said this may happen two years from now. they have kind of kicked the can down. we have to address both the revenue and the spending side and, you know, we have to make sure that the people do speak out and i encourage everybody to
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continue to write their congressmen and talk to them that they need to make their case for what needs to be done. >> there have been a number of people who have said look. this has turned into more politicking lately. do you feel that way, harley? has it become more political than it was about the job they were sent there to do? >> yes. i think it's become unfortunately, on both sides, become very difficult for them to make decisions. we got to remember we are all americans. we're all in this together. and it tends to be well, i'm taking this position no new taxes, and the other side well, you can't change anything on the benefits side. we have to address both. you can't get to where we need to go by only addressing one area. it has been to be done from a revenue standpoint and also a benefit standpoint and also reforms. we do have some areas that need to be addressed from a regulation standpoint and making government more efficient, and
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if they would look at those issues and really sit down and hammer them out, i think they can solve those issues but it's become so hard for them to make the right decision. >> harley reid chris le pack and jenn theis, thanks so much. maybe folks are watching you here this morning in washington. best of luck to all of you. we will be right back. you're watching "the early show" on cbs. with fewer chemicals. we all want the best of both worlds. introducing all free clear oxi-active. a powerful new detergent without dyes or perfumes that helps get out your toughest dirt and stains. its added natural cleaning boosters help get your whole family's wash incredibly clean. tough on stains. gentle on skin. new all free clear oxi-active. [ female announcer ] now, give dry, damaged hair a whole new life! with aveeno nourish plus moisturize. active naturals wheat formulas target
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>> whatever goal she kicks in that team losses. >> so i guess a soccer ball ended up in her enclosure and they noticed some of the zoo keepers the one she hits is the one that's going down. >> she's picked every one correct so far, don't know what she's picked for the final with japan and the u.s. yet but she'll be kicking into that goal very poon. paul the octopus -- >> i think she picked japan to win so i'm going to have to have a talk with nelly. she may want to try that again. >> both animals from germany. what is going on with the animals? germany? they can pick 'em. we'll be right back. what do we have? all four of us, together? 24. he's low fat, too and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older protein is an important part of staying active and strong. new ensure high protein... fifty percent of your
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explore all that's cool about calgary. "eye on the bay's" alberta adventure continues tonight at 7:00 on cbs 5. it is 7:55. time for news headlines from cbs 5. i'm elizabeth wenger. shares of mountain view- based google are up more than 10% this morning in response to the company's new earning report. the internet search giant made 36% more in the 2nd quarter than just a year ago. google cofounder larry page became ceo at the start of the quarter. netflix is responding to customers angered by news that the cost of service is going up about 60%. the company says it's because customers continue to order dvds and are not using the internet streaming services as much as anticipated. it is less expensive to send a movie through the web than to mail a dvd. and the final film in the
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harry potter series opened in theaters nationwide early this morning. some theaters like the mercado in santa clara began screenings at the stroke of midnight. we have your traffic and weather coming up right after this. coming
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this is a cbs news special report. i'm scott pelley. good morning. president obama is about to hold a news conference. and if you're asking, didn't he just hold one? the answer is, yes, he did, on monday, and another less than two weeks before that. the president is using his lectern at the white house as bully pu without such a deal, the united states will default on its debts for the first time ever on august 2, and now of course, that's just 18 days away. the president had another negotiating session with congressional leaders yesterday to try to break the deadlock over spending cuts and tax hikes. chip reid is waiting for the president. where do things stand? >> we are told the president is going to, quote, make the case for why we can and should
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do something significant in these debt negotiations but i tell you, the message from capitol hill is that that is a last gasp effort at best and perhaps futile. all the moan momentum of doing something simpler simply raising the debt ceiling and moving the negotiations off for later. that's what the president wanted. he wanted to raise the limit and then deal with the negotiations. but he now has taken the position that they should be done at the same time. there should be a significant deal. he is going to make that case one last time here this morning. >> the president warned congressional leaders just a couple of days ago that he was going to take his argument to the american people and that's exactly what we're seeing now. his third press conference in a couple of weeks. here's the president. >> the congressional leaders not having one today so i thought useful to give an update where we are. all of the congressi have reiterated th all the congressional leaders have reiterated the
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desire to make sure that the united states does not default on our objections and that the full faith and credit of the -- on our obligations and that the full faith and credit of the united states is preserved. that's a good thing. we should not be this close to a deadline on this issue. this should have been taken care of earlier. it is encouraging that everybody believes this is something that has to be atrusted. for general public i want to reiterate, this is not some abstract issues. these are obligations that the united states has taken on in the past. the congress has run up the credit card and we now have an obligation to pay our bills. if we do not, it could have a whole set of adverse consequences. we could end up with a situation, for example where interest rates rise for everybody all throughout the country. effectively a tax increase on everybody. because, suddenly whether you're using your credit card,
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or you're trying to get a loan for a car or a student loan businesses that are trying to make payroll, all of them could end up being impacted as a consequence of a default. now, what is important is that even as we raise the debt ceiling, we also solve the problem of underlying debt and deficits. you know i'm glad that glevenl leaders don't want to default but i think the american people expect more than that. they expect we try to solve this problem and get our fiscal house in order. so during the course of these discussions with congressional leaders, what i've tried to emphasize is we have a unique opportunity to do something big. we have a chance to stabilize america's finances for a decade, for 15 years or 20 years. if we're willing to seize the moment.
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now, what that would require would be some shared sacrifice and a balanced approach that says we're going to make significant cuts in domestic spending and i have already said i am willing to take down domestic spending to the lowest percentage of our overall economy since dwight eisenhower. it also requires cuts in defense spending and i've said that in addition to the 400 billion dollars we have cut from the defense spending we're willing to look for hundreds of billions more. it would require us taking on health care spending and that includes looking at medicare and finding ways that we can stabilize the system so that it is available not just for this generation, but for future generations. and it would require revenues. it would require even as we're asking the person who needs a student loan or the senior citizen or, you know, people
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veterans who are trying to get by on a disability check, even as we're trying to make sure that all those programs are affordable we're also saying to folks like myself that can afford it that we are able and willing to do a little bit more. that millionaires and billionaires can afford to do a little bit more. that we can close corporate loopholes so that oil companies aren't getting unnecessary tax breaks. or that corporate jet owners aren't getting unnecessary tax breaks. if we take that approach then i am confident that we can, not only impress the financial markets, but more importantly we can actually impress the american people that this town can actually get something done once in a while. now, let me acknowledge what everybody understands. it is hard to do a big package.
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my republican friends have said that they are not willing to do revenues and they have repeated that on several occasions. my hope though is that they are listening, not just to lobbyists or special interests here in washington but they are also listening to the american people. because it turns out, poll after poll, many done by your organizations, show that it's not just democrats who think we need to take a balanced approach, it's republicans as well. the clear majority of republican voters think that any deficit reduction package should have a balanced approach and should include some revenues. that's not just democrats. that's the majority of republicans. you've got a whole slew of republican officials from previous administrations. you've got a bipartisan commission that has said that we need revenues. so this is not just a democratic
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understanding. this is an understanding that i think, the american people hold that we should not be asking sacrifices from middle class folks who are working hard every day from the most vulnerable in our society, we should not be asking them to make jifssacrifices. i am still pushing for us to achieve a big deal. but what i also said to the group is if we can't do the biggest deal possible, then let's still be ambitious. let's still try to at least get a down payment on deficit reduction. and that we can actually accomplish without huge changes in revenue or significant changes in entitlements but we could still send a signal that we are serious about this problem. the fallback position the third
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option and i think the least attractive option is one in which we raise the debt ceiling, but we don't make any progress in deficit and debt because if we take that approach this issue is going to continue to plague us for months and years to come. and i think it's important for the american people that everybody in this town set politics aside that everybody in this town sets our individual interests aside, and we try to do some tough stuff and i've already taken some heat from my party for being willing to compromise. my expectation and hope is that everybody in the coming days is going to be willing to compromise. last point i'll make and then i'll take questions. we are, obviously, running out of time. and so what i've said to the members of congress is that you need over the next 24 to 36 hours is give me some sense of
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what your plan is to get the debt ceiling raised through whatever mechanisms they can think about and show me a plan in terms of what you're doing for deficit and debt reduction. if they show me a serious plan, i'm ready to move. even if it requires some tough decisions on my part. and i'm hopeful that over the next couple of days, we will see this log jam break this log jam broken, because the american people i think understandably want to see washington do its job. all right? with that, let me see who is on the list. we're going to start with jake tab le. >> thank you mr. president. you said that reducing the deficit will require shared sacrifice. we know we have an idea of the taxes that you would like to see raised on corporations and on americans in the top two tax brackets. but we don't yet know what and specifically are willing to do when it comes to entitlement spending. in the interest of transparency
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leadership, and also showing the american people that you have been negotiating in good faith, can you tell us one structural reform that you are willing to make to one of these entitlement programs that would have a major impact on the deficit? would you be able to means test social security or medicare? >> we have said we are willing to look at all of those approaches. i've laid out some criteria in terms what have would be acceptable. for example, i've said very clearly that we should make sure that current beneficiaries, as much as, are not affected. but we should look at what can we do in the out years so that over time some of these programs are more sustainable. i've said that means testing on medicare, meaning people like myself, if, you know i'm going to be turning 50 in a week.
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>> happy birthday. >> i'm starting to think a little bit more about medicare eligibility. yeah i'm going to get my aarp card soon and the discounts. but, you know, you can envision a situation where for somebody in my position, me having to pay a little bit more on premiums or copays or things like that would be appropriate and again that could make a difference. so we have been very clear about where we're willing to go. what we are not willing to do is to restructure the program in the ways that we have seen coming out of the house over the last several months where we could -- the program and you potentially have senior citizens paying $6,000 more. i view social security and medicare as the most important
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social safety nets that we have. i think it's important for them to remain as social insurance programs that give people some certainty and reliability in their golden years. but it turns out that making some modest modifications in those entitlements can save you trillions of dollars. and it's not necessary to complete revamp the program. what is necessary is to say, you know, how do we make some modifications, including by the way, on the provider's side. i think that it's important for us to keep in mind that you know, drug companies, for example, are still doing very well through the medicare program. and although we have made drugs more available at a cheaper price to seniors who are in medicare through the affordable care act, there is more work to potentially be done there. so if you look at a balanced package even within the entitlement programs, it turns
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out that you can save trillions of dollars while maintaining the corps integrity of the program. >> retirement age? >> i'm not going to get into specifics, as i said jay jake, everything you mentioned are things we have discussed. but what i'm not going to do is to ask for -- even -- well, let me put it this way. if you're a senior citizen and a modification potentially cost you a hundred or two 00 bucks a year more or even if it's not affecting current beneficiaries somebody who is 40 today, 20 years from now is going to end up having to pay a little bit more. the least i can do is to say that people who are making a million dollars or more have to do something as well. and that is the kind of tradeoff, that's the kind of balanced approach and shared sacrifice that i think most
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americans agree needs to happen. >> thank you. >> thank you, mr. president. i just thought i heard you open up the door to this middle of the door possibility. show me a serious plan and then i'm prepared to move. a few minutes before you came here house republicans would vote on the package and balanced budget amendment. is that dead on arrival or short-circuit what you expect to happen in the next 24 36 hours? >> i haven't looked at it yet and i think my expectation is that you'll probably see the house vote on a couple of things just to make political statements. but if you're trying to get to 2.4 trillion without any revenue, then you are effectively gutting a whole bunch of domestic spending that is going to be too burdensome
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and is not going to be something that i would support. you know just to be very specific, we've identified over a trillion dollars in discretionary cuts both in defense and domestic spending. that's hard to do. i mean, that requires essentially that you freeze spending and when i say "freeze," that means you're not getting inflation so that these are program cuts over the course of ten years, you would be looking at potentially a 10% cut in domestic spending. now, if you then double that number, you're -- you -- you're then, at that point, really taking a big bite out of programs that are really important to ordinary folks. i mean, you're talking then about students accumulating thousands of dollars more in student loan debt every year. you're talking about, you know,
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federal workers and veterans and others potentially having to pay more in terms of their health care. so, you know, i have not seen a credible plan, having gone through the numbers, that would allow you to get to 2.4 trillion dollars, without really hurting ordinary folks and the notion that we would be doing that and not asking anything from the wealthiest among us or from closing corporate loopholes, that doesn't seem like a serious plan to me. i mean, the notion, for example, you know, oil company tax breaks where the oil executives themselves say they probably don't need them to have an incentive to go out and drill oil and make hundreds of billions of dollars. you know, if we haven't seen the other side even budge on that, you know, then i think most democrats would say that's not a
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serious plan. one last point on the balanced budget. amendment. i don't know what version they are going to be presenting but some of the balanced budget amendments that have been floating up there this cut cap and balance for example. when you look at the numbers what you're looking at is cuts of half a trillion dollars below the ryan budget in any given year. i mean it would require cutting social security or medicare substantially. and i think it's important for everybody to understand that all of us believe that we need to get to a point where eventually we can balance the budget. we don't need a constitutional amendment to do that. what we need to do is to do our jobs and we have to do it the same way a family would do it. a family if they get
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overextended and their credit card is too high, they don't stop paying their bills. what they do they say, how do we start cutting our monthly costs? we keep on making payments but we cut out the things that aren't necessary and we do it in a way that maintains our credit rating, we do it in a way that is responsible. we don't stop sending our kids to college. we don't stop fixing the boiler or the roof that is leaking. we do things in a sensible, responsible way. we can do the same things when it comes to the federal budget. >> within that 2 trillion band if you go to the middle of the road package i think you referred to as a second option, would that need to have for your signature some sort of stimulus measures either payroll tax extension offer the tension of unemployment insurance? >> i think both would be good for the economy. a payroll tax cut is something that has put a thousand dollars in the pocket of the typical american family over the last
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six, seven months and has help offset some of the rising costs in gasoline and food and i think that american consumers and american businesses would benefit from a continuation of that -- that tax cut next year. unemployment insurance, obviously, unemployment is still too high. you know, a lot of folks out there who are doing everything they can to find a job. but the market is still tight out there. and for us to make sure that they are able to stay in their homes potentially or they are able to still support their families, i think is very important, and contributes to the overall economy. so i think there are ways that you can essentially take a little over a trillion dollars in serious discretionary cuts meaningful fulful fulful discretionary cuts and build on that cuts in nonhealth care mandatory payments, you know, ethanol programs or you know, how we he
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calculate various subsidies to various industries. that could potentially be layered on and we could still do something like a tax cut for ordinary families that would end up benefiting the economy as a whole. that is not my preferable option, though. i want to be clear. i think about this like a layered cake. you can do the bare minimum and make progressively harder decisions to solve the problem more and more and we're in a position now where if we're serious about this and everybody is willing to compromise, we can, as i said before fix this thing probably for a decade or more and that is something that i think would be good for overall business climate and would encourage the american people that washington actually is willing to take care of its business. >> good for the business and not required for your signature? is that what i heard?
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>> i'm sorry. i lost you on that one. >> you're saying the stimulative measures good for the business environment and good for the economy but not saying they need to be included for you to sign either 2 trillion or 4 trillion? >> i have to look at the overall package, hans. i don't know what the speaker or mr. mcconnell are willing to do at this point. okay? >> mr. president this process got kind of ugly the last week. it appears from the outside things even got a little futile at these meetings. any re grets on your role in how this went? do you have any re regrets you never took -- which was $4 trillion over ten years and spend the last six months selling that with a balanced package to the american people? >> no. first of all, i think this notion that things got ugly is just not true. we have been meeting every single day and we have had very constructive conversations. you know, the american people are not interested in the
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reality tv aspects of who said what and did somebody's feelings get hurt. they are interested in solving the budget problem and the deficit and the debt. and so that may be good for chatter in this town. it's not something that folks out in the country are obsessing about. i think with respect to bo simpson, it was important for us to -- bo simpson wouldn't have happened had i not set up the structure for it as you will recall. this was originally bipartisan legislation that some of the republican supporters of decided to vote against when i said i supported it. that seems to be a pattern that i'm still puzzled by. and so we set it up. they issued report and what i said was this provides us an important framework to begins discussions but there were aspects of bo simpson that i said from very early on, you
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know, were not the approach i would take. i'll give you an example. on defense spending, a huge amount of their savings on the discretionary side came out of defense spending. i think we need to cut defense but as commander in chief i have to make sure we're cutting it in a way that recognizes we are still in the middle of a war, we're winding down another war. and we have got a whole bunch of veterans we have to care for as they come home. and so what we have said is a lot of the components of bo simpson, we are willing to embrace, for example you know, the domestic spending cuts they recommend. we basically have taken. others like on defense, we have taken some but not all of the recommendations because it's important for it to be consistent with our defense needs and our security needs. bottom line is that this is not an issue of salesmanship to the american people. the american people are sold.
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the american people are sold. i just want to repeat this. >> yet republicans show support on it. republican senators signed on -- >> chuck, chuck, you have 80% of the american people who support a balanced approach. 80% of the american people support an approach that includes revenues and it includes cuts. so the notion that somehow the american people aren't sold is not the problem. the problem is members of congress are dug in ideological ideologically into various positions because they boxed themselves in with previous statements. and you know so this is not a matter of the american people knowing what the right thing to do is. this is a matter of congress doing the right thing and reflecting the will of the american people and if we do that, we will have solved this problem. lori montgomery.
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>> thank you, mr. president. i wanted to ask you about the two trains that seem to be rolling down the tracks on the hill. specifically, leader mcconnell has laid out an elaborate plan to raise the debt limit. he said last night that it looks like they are going to pair that with a new committee that would be tasked with coming up with the big solution that you talk about by the end of the year. your comment on that proposal. meanwhile, in the house, they are saying well, we could be flexible on some of our demands if we could get a balanced budget on the amendment and know vice president biden voted for a bba in 1997. is there way that could be part of a solution? is there any version of a bba that you would support? >> first of all, for the consumption of the general public bba meaning a balanced budget amendment. i think i already addressed this question earlier. we don't need a constitutional amendment to do our jobs. the constitution tells us to do our jobs. and to make sure that the
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government is living within its means and making responsible choices. and so this nokes that we're going to go through a multiyear process instead of seizing the moment now and taking care of our problems, is a typically washington response. we don't need more studies. we don't need a balanced budget amendment. we simply need to make these tough choices. and be willing to take on our basis. and everybody knows it. i mean, we could have a discussion right here about what the numbers look like and we know what is necessary and here is the good news. that it turns out we don't have to do anything radical to solve this problem. contrary to what some folks say we are not greece. you know we're not portugal. it turns out that our problem is we cut taxes without paying for them over the last decade we
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ended up instituting new programs like a prescription drug program for seniors that was not paid for, we fought two wars, we didn't pay for them. you know we had a bad recession that required a recovery act and stimulus spending and helping states and all that accumulated and there is interest on top of that. and so unwind that what is required is that we roll back those tax cuts on the wealthiest individuals, that we clean up our tax code so we're not giving out a bunch of tax breaks to companies that don't need them and are not creating jobs. we cut programs that we don't need, and we invest in those things that are going to help us grow. and every commission that's been out there has said the same
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thing and basically taken the same approach within the margin of error. so, you know, my general view is that if the american people looked at this they'd say boy, some of these decisions are tough. but they don't require us to gut medicare or social security. they don't require us to stop helping young people go to college. they don't require us to stop, you know, helping families who have got a disabled child. they don't require us to violate our obligations to our veterans and they don't require quote/unquote, job killing tax cuts. they require us to make some modest adjustments to get our house in order. and we should do it now. with respect to senator mcconnell's plan as i said, i think it is a -- it is constructive to say that if
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washington operates as usual and ca anything done let's at least advert armageddon. i'm glad that people are serious about the consequences of default, but we have two problems here. one is raising the debt ceiling. this is a problem that was manufactured here in washington because every single one of the leaders over there have voted for raising the debt ceiling in the past and typically been a difficult, but routine, process. and we do have a genuine underlying problem that our debt and deficits are too big. so senator mcconnell's approach solves the first problem. it doesn't solve the second problem. i'd like to solve that second problem.
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>> are you looking at this option as a more likely outcome at this point or can you share with us why you have some hope that the talks that have been going on might actually produce an outcome? >> i always have hope. don't you remember my campaign? even after -- even after being here for two and a half years, i continue to have hope. you now why i have hope? because of the american people. you know? when i talk to them and i meet with them as frustrated as they are about this town, they still reflect good common sense. and all we have to do is align with that common sense on this problem it can get solved. and i'm assuming that at some point, members of congress are going to listen. i just want to repeat. every republican -- not -- i won't say every. a number of republican former elected ofgs that areficials that
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are not in office now say a balanced approach that includes some revenue is the right thing to do. the majority of republican voters say that approach is the right thing to do. the proposal that i was discussing with speaker boehner fell squarely in line with what most republican voters think we should do. so the question is at what point do folks over there start listening to the people who put them in office? now is a good time. sam young. >> good morning mr. president. i'd like to go back to something chuck asked to his first question about the tone of this debate. i faintly remember your campaign and i'm guessing that while it hasn't been ugly as you say, it's not what you had in mind when you said you wanted to change the tone in washington. when you have senator mcconnell make these comments that he views these negotiations through the prism of 2012 how much does that poison the whale and going
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forward if you get a deal on this can you get anything done with congress the next year and a half? >> let me say this. and i'm not trying to poke at you guys. i generally don't watch what is said about me on cable. i generally don't read what is said about me even in the hill. and so you know, part of this job is having a thick skin and understanding a lot of this stuff is not personal. you know, that's not going to be an impediment to whatever senator mcconnell says about me on the floor of the senate is not impediment to us getting a deal done. the question is going to be at any given moment we are willing to set politics aside, at least briefly, in order to get something done. no expect politicians not to think about politics, but every
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so often, there are issues that are urgent that have to be tended to and require us to do things we don't like to do. that run contrary to our base that gets some constituency that helped elect us agitated because they are looking at it from a narrow prism. we are supposed to be stepping back and looking at it from the perspective what is good for the country. and if we are able to remind ourselves of that, then there's no reason why we shouldn't be able to get things done. look. we have been obsessing over the last couple of weeks about raising the debt ceiling and reducing the debt and deficit. i tell you what the american people are obsessing about right now is that unemployment is still way too high and too many folks owe homeshomes are still under water and prices of the things they need not just that they
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want, are going up. a lot faster than their paychecks are if they have got a job. even after we solve this problem, we still got a lot of work to do. hans was mentioning we should renew the payroll tax for another year and make unemployment insurance there for another year. >> tsh my point. >> you were making the point about whether or not, you know, that issue could be wrapped into this deal. my point is that those are a whole other set of issues we need to be talking about and working on. i got an infrastructure bank bill that would start putting construction workers back to work and rebuilding our roads and bridges. we should be cooperating on that. most of the things that i've proposed to help spur on additional job growth are traditionally bipartisan. i've got three trade deals sitting ready to go. and these are a you will trade
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deals that the republicans told me were their top priorities. they said this would be one of the best job creators that we could have. yet, it's still being held up because some folks don't want to provide trade adjustments assistance to people who may be displaced as a consequence of trade. surely, we can come up with a compromise to solve those problems. there will be huge differences between now and november 2012 between the paerpts. whoever the republican nominee is, we are going to have a big serious debate about what we believe is the right way to -- to guide america forward and to win the future. and i'm confident that i will win that debate because i think that we've got -- we've got the better approach. but, in the meantime surely we can, every once in a while, sit down and actually do something
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that helps the american people right here and right now. >> in the meantime, sir i'm curious about. you said raising the debt ceiling is fairly routine but it's brought us to the point of economic armageddon as you said. if you get past this one, how can you get any agreement with congress on the big issues you talk about? >> i am going to keep on working and i am going to keep on trying and what i'm going-to-to do is to hope that, in part this debate has focused the american people's attention a little bit more and will subject congress to scrutiny and, i think increasingly, the american people are going to say to themselves, you know what? if a party or a politician is constantly taking the position my way or the highway, constantly being locked into, you know eye yo logically rigid
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positions that we are going to remember at the polls. you know, it's kind of cumulative. the american people aren't paying attention to the details of every aspect of this negotiation, but i think what the american people are paying attention to is who seems to be trying to get something done? and who seems to be just posturing and trying to score political points. i think it's going to be in the interests of everybody who wants to continue to serve in this town to make sure that they are on the right side of that impression. and that is, by the way, what i said in the meeting two days ago. i was very plunt blunt.blunt. i said the american people do not want to see a bunch of posturing. they don't want to hear a bunch of sound bites. what they want is for us to solve problems and we all have to remember that. that is why we were sent here. last question, scott? >> thank you, mr. president. i wonder if you've seen any sign
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in the meetings that republicans are being more aligned with that american majority? or if we are in the same place today that we were on monday? >> it's probably better for you to ask them how they're thinking. i do think that -- i've said this before -- speaker boehner, in good faith, was trying to see if it was possible to get a big deal done. he had some problems in his caucus. my hope is that after some reflection after we walk through all of the numbers this week and we looked at all of the options, that there may be some movement, some possibility, some interest to still get something more than the bare minimum done but we are running out of time. that is the main concern i have at this point. we have enough time to do a big deal. you know, i've got reams of paper and printouts and
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spreadsheets on my desk and so we know how we can create a package that solves the deficits and debt for a significant period of time. but in order to do that we got to get started now. and that is why i'm expecting some answers from all of the congressional leaders sometime in the next couple of days. and i have to say, you know, this is tough on the democratic side too. merns some of the things i've talked about and said i would be willing to see happen there are some democrats who think that's absolutely unacceptable. and so that's where i'd have a selling job, chuck, is trying to sell some of our party that if you are a progressive, you should be concerned about debt and deficit just as much as if you're a conservative. and the reason is because if the only thing we're talking about over the next year two years,
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five years is debt and deficits then it's very hard to start talking about how do we make investments in community colleges so that our kids are trained, how do we actually rebuild 2 trillion dollars worth of crumbling infrastructure. you know? if you care about making investments in our kids and making investments in our infrastructure and making investments in basic research, then you should want our fiscal house in order. so that every time we propose a new initiative, somebody doesn't just throw up their hands and say, ah, more big spending more government. it would be very helpful for us to be able to say to the american people our fiscal house is in order and so now the question is what should we be doing to win the future and make ourselves more competitive and create more jobs and what aspects of what government is doing are a waste and what we
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should eliminate. that is the kind of debate i'd like to have. all right? thank you guys. >> the president of the united states in the white house briefing room. what is really an extraordinary campaign, to reach out to the american people to sell his view on the debt and deficit problem. but, of course, that is just half of the story. with the other half of the story, we have nancy cordes on capitol hill who has been listening to republican reaction. nancy, the president said that the congress must seize an opportunity, that this is a chance to do something big on the federal budget. what are the chances now that something big is actually going to happen? >> reporter: well, as far as house and senate republicans are concerned, the chances are not very great. in fact, one senate republican aide went so far as to tell me the talks going on with the president are irrelevant at this point. that is because they feel like these talks are not going to achieve two primary considerations for republicans. first, they want to achieve $2.5
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trillion in deficit reduction and second of all they want to do that without a penny of tax increases. and since they don't think that is going to happen here is how speaker boehner described the talks this morning. >> i don't want to conclude any chance of coming to an an agreement. but they have been unwilling to put a real plan on the table and without serious spending cuts without real reform entitlement programs, this problem is not going to be solved. >> reporter: so republicans are still at the table, scott but they are not feeling good about the outcome. >> nancy, we're just 18 days away now from the federal government gautdefaulting on its debt for the first time in history. the president said earlier this week in a cbs news interview he would not be able to guarantee that social security checks would go out on august 3rd. let me ask, if they are pessimistic on capitol hill about doing the big deal what is the backup plan? >> well republicans in both
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houses are now working on their own backup plans. over in the house, it's something that they call cut, cap, and balance. they are going to take a vote next week on capping the federal budget at 18% of gdp. right now it's about 22%. that is really tough to do. in fact, it's even more conservative than the ryan plan that is out there. so unlikely to get democratic votes. over on the senate side they are actually working with democrats to put up $1.5 trillion in deficit reduction up front and ask the president to ask several times over the next 18 months that the debt limit be increased. it doesn't look very good to anybody right now, but as we get closer to august 2nd, scott these plans both might start looking a lot better to everybody. >> nancy, thank you. chip reid at the white house tell us what comes next. >> reporter: the president said in the next couple of days the senate and house republicans come to the white house and say if a big deal or medium deal is doable and looking unlikely as
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nancy said. at that point they have to anything some way to get the debt limit raised without a big deal on the budget. >> thank you chip. more about this story our local news, on this cbs station and on cbsnews.com and tonight on the "cbs evening news." until then with chip reid and nancy cordes i'm scott pelley, cbs news, new york. over. >> allht, >> a thousand dollar fine for every ten minutes they go over. >> cbs' bill whitaker. now to erica. >> the novel "snow flower and the secret fan" became a story about two chinese women with a bond that was stronger than any bond they shared including marriage. here is cbs' betty nguyen. >> i'm writing a book about the
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old days. >> reporter: "flow flower and the secret fan" tells the story about two friendships. one set in modern-day china, another in its very distant past. the film was based on the 2005 best selling novel about a 19th century chinese woman named lily. >> she had what was called an old fame. a friendship for life an emotional marriage between women when actual marriage had very little emotion attached to it. >> reporter: the director was struck by the powerful relationship between lily and snow flower. >> oftentimes women tend to form much closer friendships with their friends than you know with their husbands. marriages are oftentimes business arrangements. these women have this special language which is "women language." >> it literally means women's script.
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so it was only practiced as far as we know today in very very small area in south-central china. it was shared among women only. >> reporter: standard chinese is very square very blocky. this is very long and thin. it's been described as looking like mosquito legs. >> reporter: throughout the film, women use this private language to combat their public sorrows, most notably the once customary practice of foot binding. >> women had their feet bound by their mothers when they turned about 5 years old. what a mother would do is take her daughters toes, wrap them under the foot, then wrap them in these long strips of binding cloth and then make her daughter walk back and forth week after week after week until finally her daughters toes broke. >> binding the foot was still very much a status symbol and announced to the world not only that you are from a good family a family who can afford to have
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you work indoors instead of out in the fields but also that you had the character to withstand a lot of pain. >> this is why this secret language became so important for them. because in a sense, it allowed them to fly out of the window of their lives. >> reporter: today chinese women don't share the same limitations as lily and snow flower. >> this shoe was for women with tiny bound feet. >> reporter: but he wanted to show that certain things are universal. >> i know modern women are more independent, freer and have more choices. but still they long for friendship love and hope. those same feelings and emotions still apply. so i wanted to sort of set a modern-day story against it. >> reporter: he asked one of china's biggest stars to play lily and her contemporary counterpart nina. after reading their stories, she
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said yes. >> so i do believe these kind of emotions and i think these kind of relationships is very cherished in everyone's life. >> she's just an extraordinary actress. she's the meryl streep of china. she's won two versions of their academy awards. ♪ ♪ six years ago the story inspired many. she's sure the film version will translate just as well. >> it's through our friends that we're able to connect, that we're able to confide our sorrows and celebrate our triumphs, whether we lived a thousand years ago or right now today. >> reporter: betty nguyen cbs news, new york. just ahead two baseball stars, one off the field and off. er. we'll be right back. you're watching "the early show" on cbs.
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♪ yankee short stop derek jeter slammed a home run last saturday for his 3,000th hit of his career he entered the record books. just the 28th player to ever reach that number. and he thrust christian lopez in the spotlight as well because he's the guy who wound up with that suddenly valuable baseball and more remarkably he gave it right back to derek. >> to left field. going back. looking up. see ya. 3,000. >> it was a majestic shot, hit number 3,000 for derek jeter, the latest in a long line of new york yankee legends. >> derek jeter has done it in grand style! >> and it created a new yankee legend. christian lopez, who wond up with the historic baseball. >> the ball was in the air, i was looking at it, it got bigger and bigger. i see my dad dive across four people and he unfortunately
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missed it and it just kind of landed in my lap. crazy. >> what some people think is truly crazy, lopez gave the treasured ball back to derek jeter. >> he hit it. i happened to be lucky enough to catch it. >> reporter: it's a different attitude than the one displayed by two fans who caught barry bonds' 73rd homer in 2001. a judge ordered the two to sell the ball and split the proceeds. $450,000. other memorable home run balls have fetched astronomical sums. bonds' all-time home run record breaking ball went for more than $750,000. and the ball mark mcgwire hit for his unprecedented 70 home run back in 1998 sold for almost $3 million. this could have been some payday for lopez who says he has more than $100,000 in student loans to pay off. >> you know this ball will be easy a six-figure paycheck. it wasn't about money to me. >> reporter: to reward lopez, who says he's been a yankee fan as long as he can breathe, the
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team gave him tickets to the rest of this year's games in a luxury suite and bats balls and jerseys. >> first, i scratched my head, wow, i don't know if this kid has it all there. >> reporter: brandon steiner is one of the foremost authorities on sports people beale ya. he couldn't believe that lopez would give the ball away. >> how about making some money? he gave up a lot of money, but still not too late to make some money. >> something great happened. then obviously a great kid here a great guy did something just great. that's what it's about. >> reporter: so on wednesday, steiner teamed up with his old friend, owner of a chain of new york-based sport going stores and modell gave him a world series ring. the two vowed to raise $50,000 for lopez. >> i want to give you something that's so special to me that i know you will cherish it for life. this is the 2009 world series ring. thank you so much. >> he's a great kid, great
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person. raised the right way. >> you got any other offers out there? >> right now i have a publicist that's handling -- >> wait a second. you got a what? >> i got a publicist. >> you got a publicist? >> yes a public relations person that's helping me out. >> 22 derek jeter. >> jeter! >> everybody about derek jeter is just the best. >> derek jeter is easily one of the most popular yankees of all time. a favorite of lopez's, too. >> when you think of new york sport, you think of derek jeter. >> he's a hero for a lot of these kids that play sports. >> now those kids may have another new york hero. the epitome of all that is good in a baseball fan. >> he's a great guy. he's been so wonderful since all this happened. tall reaction he's had. all these people trying to help him pay the taxes on the gift. >> that's the thing, too, now that the government is going to actually sink their teeth into some of the prizes that he'sÑisqp3+j
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for being such a great sport. maybe the yankees will step up and cover the cost. because the luxury suite, it comes out to about $60,000. then he gets more gifts and has to pay the taxes on it. >> maybe derek jeter at some point might step up and say -- >> no pressure there, wragge. geez. >> you never know. corporate jet types. i'm just kidding. but also topps baseball card. christian although bez will have his own card. >> very cool. i'll buy that. >> have a great weekend. we'll see you tomorrow on the saturday "early show." "saturday early show." >> happy birthday.
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headlines... this morning immigrant rights activists plan to hold a news conference to try and pressure san jose police chief chris ecision good morning. it . immigrant rights activists plan to hold a news conference to pressure san jose police chief chris moore. they oppose his attempt to get help from two federal agents. he says the agents' role will be in assisting with gang investigations. a new california will make it easier to pay for college for undocumented immigrants. ab-130 passed the state senate yesterday and governor brown is expected to sign it. it lets students who pay in- state tuition collect privately funded scholarships even if they are in the country illegally. public schools will now be required to cover the
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contributions of the gay community in social studies courses. a new law makes california the first state to require the curriculum. governor brown says, quote, history should be honest. it will take several years to shape the first lesson plan. we have your traffic and weather coming up right after this.
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good morning. caltrain delays. trains number 217 southbound about 10 to 15 minutes behind. muni, ace and bart problem- free. north 101, an accident blocking lanes now over to the right shoulder but still sluggish north 101 int menlo park 880 slow connecting to 237. that's traffic. here's kristy with the forecast. >> finally seeing a little bit of sunshine out there, although cloud cover still hanging on at the coastline. temperatures today still on the cool side between 7 and 16 degrees below normal for this time of year. so outside sun trying to peek through a little bit. you will see the clouds in the picture, though. we will warm up by this afternoon. mid-70s in those inland locations. mid-60s around the bay shores there. we'll see a little bit of cloud cover into the afternoon at the coast keeping it cooler in the mid-50s. and certainly breezy as the afternoon progresses. seven-day forecast shows the slight warmup over the next couple of days. next week, going to warm up
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more and more. by wednesday, going to break the 90-degree mark in those inland locations mostly sunny skies.